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Molefe saga overshadows start of #AUW2017

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THE ISSUE:

  • Eskom CEO Brian Molefe was reappointed to his role after the board was ordered to rescind his R30m pension payout and made a compromise for Molefe to return. He then resigned as MP after just three months.
  • It was thought Molefe had resigned to clear his name and in the name of good governance following the State of Capture report by the Public Protector, which implicated him and the Guptas in questionable coal contracts with the power utility.
  • Molefe danced as employees sang his name on Monday, while protestors picketed outside Eskom and the DA filed court papers to have his reappointment reversed.
  • Molefe was expected to address the opening of the African Utility Week in Cape Town on Tuesday, a major conference that attracts a wide range of African power utilities and major companies associated with the power industry.
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16 May 2017

Cape Town – The reappointment of Brian Molefe as Eskom CEO was on everyone’s lips at the start the African Utility Week in Cape Town.

The conference started off with an announcement that Molefe cancelled his appearance as the keynote speaker following an AmaBhungane’s expose in which former mining minister Ngoako Ramatlhodi alleged that Molefe and Eskom chairperson Ben Ngubane pressured him to help the controversial Gupta-family takeover a Glencore coal mine in 2016.

Tuesday also marked Molefe’s second day as reinstated Eskom CEO after he resigned in November when then Public Protector Thuli Madonsela implicated him in a coal-related deal with the Gupta-family in the damming State Capture report. 

During an unscheduled press briefing, Ngubane said Molefe could not attend the conference as he had “urgent business” to attend to in parliament. 

Ngubane defended Molefe’s coal-deal with Gupta-owned Tegeta, saying other coal suppliers at the time wanted to increase the price of coal despite ongoing load shedding at the time. “He (Molefe) did a lot of negotiations with Tegeta, which was the nearest mine to the power station…. He had to [negotiate with Tegeta]. And then indeed we did not have load shedding,” Ngubane said. 

Ngubane also defended Molefe's proposed R30m pension pay-out, saying the board decided on the retirement package after the Cabinet decided that Molefe can only be appointed for a five-year term. 

"When (Brian) Molefe came in 2015, there was a problem because we came with an understanding that he was going to be permanent,” Ngubane said. 

Last week, Public Enterprises Minister Lynne Brown said Molefe had to return to Eskom as his early retirement pay-out of R30m would be too expensive. 

Meanwhile, outside the CTICC, the Western Cape SACP staged an illegal picket against Molefe’s reappointment. Provincial secretary Benson Ngqentsu said Molefe was reappointed to continue “looting” at Eskom. 

He said Molefe returned to Eskom because he failed to secure a ministerial position in government. "Brian Molefe wasn’t honest when he resigned as Eskom CEO, he left because he thought he was getting a Cabinet position," Ngqentsu said. 

Roughly 50 SACP supporters assembled in front of the building, under the watchful eye of police and CTICC security officials.

Ngqentsu earlier told Fin24 that Ngubane is the "main culprit" responsible for bring Eskom into disarray. "He is the one that wants to build another Hlaudi [Motsoeneng] at Eskom," Ngqentsu said.

16 May 2017

ANC tells Zuma govt to reverse  Molefe return as Eskom CEO

Johannesburg - The ruling African National Congress told President Jacob Zuma’s government that it should rescind a decision to reappoint Brian Molefe as the chief executive officer of state power utility Eskom, party Secretary-General Gwede Mantashe said.

ANC officials told the government of their position at a meeting on Monday attended by Zuma, Mantashe said by phone from Johannesburg. - Bloomberg News

FULL STORY

16 May 2017

New energy minister pledges her support for gas programme

Cape Town - Energy Minister Mmamoloko Kubayi on Tuesday pledged her support for the 3.7 GW gas infrastructure development programme started by her predecessor.

Kubayi’s pledge took place during her opening address at the Gas to Power programme at the African Utility Week in Cape Town. She apologised for being reticent on details of her energy plans, but said “more will be revealed by Friday” when she delivers her budget speech in Parliament.

“Over the past few months we have indicated our indication to launch gas infrastructure development though the Section 34 determination under the Electricity Regulation Act, in pursuit of an initial 3 700 MW of power plants,” she said.

“We also issued a preliminary information memorandum regarding the programme. As the Minister of Energy, I wish to reiterate my support for this programme and to assure you that we intend to proceed with the vision and policy objectives that we have outlined."

FULL STORY

16 May 2017

Molefe ‘retired’ to protect new wife from media frenzy – Eskom chair

Cape Town - Eskom CEO Brian Molefe asked chairperson Ben Ngubane if he could exercise his early retirement option to shield the woman he was about to marry from the media frenzy following the Public Protector’s State of Capture report in November 2016.

Ngubane shared this insight into Molefe’s thinking with media on the sidelines of the African Utility Week, after the Eskom CEO cancelled his opening address speech one day after resuming his role.

The Eskom chair said Molefe “was absolutely devastated” by the State of Capture report in November 2016. “He came to me and said he thinks he needs to exercise his early retirement option," he said.

Ngubane said he tried to persuade Molefe that over the long period this will be disastrous for him. “He even told me that he was getting married soon and he couldn't have his wife waking up every day to these funny things in the press,” said Ngubane.

“I told him that the board accepts that you want to exercise your early retirement option."

Ngubane said it then became an administrative issue of the Eskom Pension Board. “We were not even aware of the quantum (R30m pension payout) that was involved.”

Molefe shed tears during a media conference last year when Eskom first addressed the Public Protector report, which implicated him with the sale of Optimum coal mine from Glencore to Gupta-owned Tegeta. Soon afterwards, he announced he was stepping down as CEO to clear his name.

FULL STORY

16 May 2017

WATCH: Governance board suggested 10-year pension for Molefe - Ngubane

16 May 2017

WATCH: 'We were looking at options' - Eskom chair on Gupta allegations

16 May 2017

WATCH: Ngubane slams Ramatlhodi's Gupta claims as preposterous

16 May 2017

Eskom chair Ben Ngubane tells the story behind the Tegeta coal deal

Ngubane moving on to 2015 load shedding and sale of Optimum to Tegeta in his impromptu media briefing at #AUW2017:

“Do you realise that winter was coming and we still had load shedding? Then the quarrel with Optimum and Glencore surfaced, because Glencore wanted us to give an export price per tonne of coal, which then would have increased from R150 to more than R500 per tonne of coal. Then Brian said we can't do that.  

“He (Molefe) was looking for an alternative because Optimum said it won't provide a single ounce of coal to Hendrina Power Station. That would have meant that we would be losing 2000MW immediately. And it was going to be winter.  

“He (Molefe) did a lot of negotiations with Tegeta, which was the nearest mine to the power station. I am surprised when people say, 'why was he speaking to Tegeta or Oakbay or whoever. He had to. And then indeed we did not have load shedding. 

"We had sufficient coal trucked in, brought in, and built up the stocks to more than a million tonnes of coal.       

“Now we are having another problem, because Treasury has not signed our coal purchase agreements.          

"And now we are in winter and winter is getting bitter. The people are using electricity like crazy - 34 000 MW."        

16 May 2017

Ngubane on why Molefe wanted pension payout

Eskom chairperson Ben Ngubane on CEO Brian Molefe’s reaction to the damning Public Protector report on state capture and why he wanted to exercise his pension payout option:

“He (Molefe) was absolutely devastated. He came to me and said he thinks he needs to exercise his early retirement option."

Ngubane said he tried to persuade Molefe that over the long period this will be disastrous for him.

“He even told me that he was getting married soon and he couldn't have his wife waking up every day to these funny things in the press.

“I told him that the board accepts that you want to exercise your early retirement option."

Ngubane said it then became an administrative issue of the Eskom Pension Board. “We were not even aware of the quantum (R30m pension payout) that was involved.”

16 May 2017

Ngubane explains R30m pension payout for Molefe

Eskom chairperson Ben Ngubane responding to CEO Brian Molefe’s R30 pension payout: “No, no (when asked if Brian Molefe held a gun to the Eskom board over the R30m pension payout). 

"When (Brian) Molefe came in 2015, there was a problem because we came with an understanding that he was going to be permanent. 

“After we had signed those contracts it came about (through Cabinet) that it can't be permanent; it must be five years. 

“The losses that he would suffer because of that change came to the fore and our people in governance sat with him, recommended to the board (this is way back - 2015) that if we buy 10 years pension for him to compensate for the gap that we created in his pension when he retired in five years’ time."


16 May 2017

Eskom chairperson Ben Ngubane on why Brian Molefe skipped #AUW2017: "He (Brian Molefe) was going to be here, but somehow he was called to Parliament for something. 

Asked if Brian Molefe would be embarrassed to open the African Utility Week, Ngubane laughed ..."embarrassed!?" 

“He (Brian Molefe) is to start where he left off. It's going to be for the good (of the people). He will make electricity affordable for the people.

“Our objective is to lower the cost of electricity in the country. (We will do this) by paying back the government guarantees, generating enough revenue, creating savings through efficiencies like the design to cost programme.  

“We are going to move forward.”

16 May 2017

Former Mines Minister Ngoako Ramatlhodi has dropped a bombshell, alleging that Eskom CEO Brian Molefe and chairperson Ben Ngubane pressured him to help the Guptas takeover Optimum.
READ: Ramatlhodi spills beans on how Molefe 'helped' Guptas

16 May 2017

Ngubane slams Ramatlhodi's Gupta claims as preposterous

Eskom chairperson Ben Ngubane giving an impromptu media briefing at #AUW2017 on the Brian Molefe / Gupta saga: “We can't instruct a minister what to do. We take our problems to the ministers (Energy, Department of Public Enterprises, Treasury and Department of Mineral Resources) and we ask for help.  

“For a minister to claim that we actually made him take a decision on something is preposterous."                       

16 May 2017

Ngubane punts Eskom smart meter deal as Molefe skips conference

Cape Town - Deputy Minister of Public Enterprises Dikobe Ben Martins and Eskom chairperson Ben Ngubane said while South Africa has come a long way with electrifying the nation, key issues which require collaboration with the stakeholders attending the African Utility Week still need to be addressed.

Martins and Ngubane gave two keynote addresses at the opening of the power conference in Cape Town on Tuesday.

Ngubane announced that Eskom would become the first energy partner to endorse Huawei’s OpenLab in smart grid innovation. “The Huawei-Eskom collaboration will seek to develop the next-era of power internet of things, power cloud, transmission and distribution telecom and cyber security solutions, as well as advanced analytics for grid operations, in order to drive digital transformation in the industry,” he said.

Martins pointed to power outages in Africa reducing gross domestic product by 2% to 4% per year. He called on stakeholders at the conference to work together to find solutions to the power issues facing Africa and South Africa.

Eskom CEO Brian Molefe had been set to give the address, but Ngubane said he had been called away to tend to “urgent business”.

FULL STORY

16 May 2017

Crowd protesting against the reappointment of Eskom CEO Brian Molefe and the utility's chair Ben Ngubane slowly moves back to Walter Sisulu avenue, escorted by police.

16 May 2017

The SACP in the Western Cape is protesting the reappointment of Brian Molefe as Eskom CEO and demands the decision be reversed.

The SACP Western Cape said it resolved over the weekend to engage in mass action in support of the organisation's call to protest the irregular decision to reappoint Molefe.

16 May 2017

News24's James de Villiers reports: Strong security presence as SACP supporters move to the entrance of the CTICC.

16 May 2017

Ben Martins: Only 35% of SA population had access to electricity during apartheid. ANC rolled out electricity to 88% since 1994.

16 May 2017

Eskom CEO Brian Molefe reportedly told staff on his first day back on the job that South Africa must continue with its nuclear programme to ensure we have electricity to support growth.

16 May 2017

Ben Martins: #AUW2017 a place to find new solutions to solve African power issues.

16 May 2017

Deputy Minister of Public Enterprises Ben Martins now speaking.

16 May 2017

WATCH LIVE: Ngubane speaks for Eskom at African Utility Week

16 May 2017

WATCH OUR LIVE STREAM FROM #AfricanUtilityWeek


16 May 2017

SACP to picket Eskom's irregular decision to reappoint Brian Molefe as CEO

The Western Cape SACP is expected to picket in front of the CTICC where reappointed Eskom CEO Brain Molefe was expected to speak.

SACP provincial secretary Benson Ngqentsu said they will continue with the picket despite Molefe cancelling his appearance. “The main culprit responsible for the mess at Eskom is board chairperson Ben Ngubane and he is still speaking,” Ngqentsu told Fin24.  

Ngentsu said they did not gain approval for the picket as the relevant authorities weren’t available. The CTICC could not immediately respond to a request for comment.  

16 May 2017

Molefe cancels opening power conference

Cape Town – Eskom CEO Brian Molefe on Tuesday cancelled delivering a keynote address at the African Utility Week in Cape Town on Tuesday, a day after returning to his old job.

African Utility Week spokesperson Annemarie Roodbol told Fin24 that Eskom spokespeople had confirmed he would attend on Tuesday morning, but then there was a sudden change to the plans.

Eskom chairperson Ben Ngubane, who was set to speak after Molefe, will address the conference, as well as Public Enterprises Deputy Minister Dikobe Ben Martins.

The last-minute cancellation follows AmaBhungane’s expose on Tuesday, where former mining minister Ngoako Ramatlhodi alleged that Molefe and Ngubane pressurised him to help the Guptas takeover Glencore’s coal mine in 2016.

READ: Ramatlhodi spills beans on how Molefe 'helped' Guptas

It also follows mass resistance to Molefe’s return to Eskom, with the African National Congress seeking Public Enterprises Minister Lynne Brown to reverse her decision to reappoint Molefe and/or dissolve the Eskom board.  

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